Twitter Faces Wall Of Negativity As It Reports Earnings Today

Twitter faces a wall of negative sentiment, mostly over whether it can meaningfully grow its user base. Monthly active users (MAUs) were barely more than flat last quarter, and the stock has fallen 43% from $67.50 at the beginning of the year to around $38 today.

Those are big stakes for Costolo, who has vowed to restart growth among new users of Twitter. He has ordered parts of the app be redesigned and shuffled product management to achieve that.

"The users are still far smaller and growing pretty slowly relative to what we're seeing at Facebook, and I think that's the real challenge is how big can Twitter be?" Greenfield said on "Squawk on the Street." "The problem is, how do they convince your mom, how do they convince your friends, [that] they have to be on Twitter the way they're on Instagram or on Facebook?"

World Cup started around mid June and ended around mid July, which suggests that there will be a notable impact on Twitter's second quarter metrics. It is highly probable that the uptick in active user base growth will be temporary, and could moderate by the fourth quarter of this year. This is because roughly 50% of the impact will be reflected in the third quarter which includes July.